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Sustained End-user Demand Offers Hope Amidst Challenges in the South African Gearboxes and Geared Motors Market Reveals Frost & Sullivan - Continued demand from the largest end-user sector – metals, minerals and mining – will sustain revenues in the South African gearboxes and geared motors market
Sustained End-user Demand Offers Hope Amidst Challenges in the South African Gearboxes and Geared Motors Market Reveals Frost & Sullivan

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2009/04/16 - Continued demand from the largest end-user sector – metals, minerals and mining – will sustain revenues in the South African gearboxes and geared motors market.

   
 
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Manufacturers will however have to align their products with a more comprehensive service offering in order to maximise revenues and entrench their businesses as the South African operating environment deteriorates.

New analysis from Frost & Sullivan (industrialautomation.frost.com), South African Gearboxes and Geared Motors Market, finds that the market earned revenues of $99.2 million in 2007 and estimates this to reach $222.5 million in 2014.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by email.

"The South African gearboxes and geared motors market is a largely mature market that will experience greater industry consolidation within the coming years due to tougher operating conditions," cautions Frost & Sullivan Industry Analyst Litiya Matakala. "The four largest manufacturers control more than three quarters of the total market revenues."

In this environment, smaller manufacturers have to specialise or compete intensely for the remainder of the market. This drives down prices significantly at the lower end and damages the longevity of smaller manufacturers.

Despite these challenges, the market continues to remain optimistic. Gearboxes and geared motors are used in several end-user sectors. Through design and application, these motors tend to exhibit high, regular replacement rates.

However, the lack of significant technological advances in this market decreases its comparative competitiveness relative to substitute technologies. Alternative technologies may play an increasingly disruptive role in the next few years.

"The emergence of digital networks and the increasing adoption of highly automated systems will hinder market expansion," states Matakala. "Many of the applications that were traditionally best suited for a gearbox and geared motor are now best carried out by a variable speed drive with an electric motor. This electric motor solution is cheaper and more energy efficient."

Industry consolidation within the gearboxes and geared motors market is extremely probable, either through strategic partnerships or mergers and acquisitions. Manufacturers will have to embark on cost-cutting and various other productive improvements in order to maintain or expand market share in a highly mature and saturated market.

South African Gearboxes and Geared Motors Market is part of the Industrial Automation & Process Control Growth Partnership Service programme, which also includes research in the following markets: South African HMI Market, South African Pressure Sensors Market, South African Electric Motors Market and South African SCADA Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

South African Gearboxes and Geared Motors Market / M2FE

 
 
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Sustained End-user Demand Offers Hope Amidst Challenges in the South African Gearboxes and Geared Motors Market Reveals Frost & Sullivan

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